Rupee declines by over 24 paise against dollar

Posted By: Pti
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Mumbai, Feb 10 (PTI) The rupee today depreciated for thesecond day in a row by over 24 paise to end at a week''s low of45.7250/7350 against the US currency.

Forex dealers attributed the fall to sustained dollardemand from importers and some banks, and sluggish equities.

The Bombay Stock Exchange benchmark Sensex today tumbledby 129.73 points or 0.74 per cent. In three straight sessionsof loss it has fallen by a massive 574.15 points or 3.18 percent.

Increased capital outflows too put pressure on the rupee.

Foreign Institutional Investors (FIIs) have taken out USD284.56 million in February and a total USD 1.3 billion in 2011so far.

Meanwhile, global crude oil was trading above USD 86 abarrel in London today.

In active trade at the Interbank Foreign Exchange (Forex)market, the domestic unit opened weak at 45.57/58 a dollarfrom previous close of 45.48/49 and immediately touched theday''s high of 45.50.

Later, it dropped to end at 45.7250/7350, a net loss of0.54 per cent.

Stronger dollar overseas too affected the rupee sentimentas the dollar index of six major currencies was up by about0.4 per cent in European market today.

The rupee premium for the forward dollar ended remarkablylower on fresh receivings by exporters. The benchmarksix-month forward dollar premium payable in July finished downat 126-128 paise from 131-133 paise yesterday.

Far-forward contracts maturing in January also closedweak at 254-256 paise from 262-1/2-264-1/2 paise previously.

The Reserve Bank of India has fixed the reference ratefor the dollar at Rs 45.58 and the euro at Rs 62.41.

The rupee declined to Rs 73.39/41 against the poundsterling from yesterday''s close of Rs 73.03/05, while moveddown further to Rs 62.32/34 per euro from Rs 62.00/02previously.

However, it reacted downwards against the yen to Rs55.32/34 per 100 yen from its last close of Rs 55.07/09. PTIVMP SBP

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